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What net neutrality repeal in the U.S. could mean for small businesses in Alberta

EDMONTON—The repeal of net neutrality in the United States could end up hurting Alberta businesses, digital experts warn.

Kate Leadbeater, president of Digital Alberta — an industry association representing companies and digital professionals from various sectors — said the Federal Communications Commission’s repeal of net neutrality rules Monday will create a “pay to play” scenario that will put new businesses at a disadvantage.

The move will allow U.S. internet service providers (ISPs) to block websites and apps, slow certain websites and create a “fast lane” for companies and consumers that are willing and able to pay more, with a slower internet for those who don’t.

“Consumers have a very low tolerance for low speeds, and they’ll ditch a website that doesn’t load quickly. What if all of a sudden there is a whole section of websites based on this new net neutrality piece that are now extremely slow to load, and consumers sort of give up and don’t connect with those web properties?” Leadbeater said.

“That could really impact the success of those companies, but also the information people are getting.”

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She added that well-known websites used by Canadians, such as Netflix, will also “almost certainly” have to pay to have their content prioritized under the new rules, and those costs could be passed on to consumers.

“We’re very concerned with how digital policies are going to impact Canadians and are going to impact Albertans,” Leadbeater said.

“It will either cost us more money to have the same speed, or to access the same content,” he said. “Or we won’t be able to see it, or the user experience will suck.”

Schwabe said the move will allow big businesses to “play dirty” and squeeze out smaller competitors. He’s urging Canadians to speak out and let their government representatives know they value net neutrality.

He added that Canada’s opposition to the repeal will also put Canadian internet providers at a further disadvantage.

“The whole idea of repealing net neutrality and the cable companies wanting that is because it provides an extra layer of revenue for them — now they can charge for the speed that they had to give away before, at a certain price,” Schwabe said. “So now they have another layer of revenue they can generate. Whereas in Canada, those ISPs, those cable companies, they’re not going to have that revenue stream.”

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Sharon Polsky, vice-president of the Rocky Mountain Civil Liberties Association, said Canadians already pay among the highest rates in the world for cellphone data and the net neutrality repeal will give providers a licence to charge even more.

She said small Canadian businesses could be “decimated” by the move.

“The economic impact could be huge,” she said.

The Canadian government announced a review of the Broadcasting Act and the Telecommunications Act last week that will be guided by the principle of net neutrality and explore opportunities to further enshrine net neutrality in legislation.

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